Finance when remortgaging

alexj87

Hi

Is it a bad idea to get a couch on finance if my fixed mortgage rate is up in April? 

Or will it be okay? It's 4 years no interest if that matters? 

Thank you

K_S

@alexj87 It's hard to predict how exactly it may or may not impact your specific application (coming up soon I presume given your fix is up in April) but here are few general thoughts -

For a product-switch (staying with your current lender, not borrowing more), it's unlikely to have any impact at all as mainstream lender product switches usually do not involve any fresh checks.

For a re-mortgage (changing to a new lender)
- the monthly payment will count as an outgoing for the specific lender's affordability calculator and may impact the amount you can borrow. The length of the loan, interest rate, etc. don't really factor in, it's all about the monthly payment.
- depending on how close the furniture finance application and the mortgage application are done, there might be a slight impact from the hard-footprint credit check. But this is unlikely to be a showstopper unless you were already borderline on lender 'credit-scoring', for instance because you have adverse credit history, or it's a very high LTV re-mortgage application, etc.  

alexj87 said:

Hi

Is it a bad idea to get a couch on finance if my fixed mortgage rate is up in April? 

Or will it be okay? It's 4 years no interest if that matters? 

Thank you

alexj87

We got our mortgage with Kent reliance nearly 2 years ago and our credit wasn't great. However the negative factors were ready to fall off (have done now) We did 70/30 loan to value.  But on a concessionary mortgage. 

Our credit scores have improved massively.
We have a credit card with 6.5 balance and 2k spent on it paying 200 a month towards. 
The couch would be 45 a month over 2 years 
And that's it except general bills.  We will be changing suppliers depending on the best rate we can get or we might hold off a few months to see what happens with the interest rates we're not sure just yet.... Adulting is hard lol

Edi81

Personally i wouldn’t risk it. 

If your fixed rate is up in April you should start looking now 

alexj87

Edi81 said:

Personally i wouldn’t risk it. 

If your fixed rate is up in April you should start looking now 

For a new mortgage or couch lol

Edi81

Mortgage - if changing your supplier there is a couple of months of legal work required. 

penners324

I wouldn't add extra debt at this point. The opposite in fact, get the credit card debt down